India's Oct-Dec current account deficit widens to 2.7% of GDP

India's current account deficit widened in the three months to December, mainly on the back the higher trade deficit, the Reserve Bank of India said on Thursday.

The country's current account deficit (CAD) stood at $23 billion or 2.7% of GDP in the third quarter of fiscal year 2021/22, compared with a deficit of $2.2 billion or 0.3% of GDP as year earlier.

In the preceding quarter, the shortfall stood at $9.9 billion or 1.3% of GDP, RBI data showed.

"We expect the current account deficit to recede somewhat in Q4FY22, to around $17-$21 billion, with the third wave temporarily curtailing certain imports,"